TOURISM AUTHORITY COULD BE SHUTTERED

Mayor holding back marketing district money vital to agency

Portion of the Tourism Authority’s funding that relies on revenues from San Diego’s Tourism Marketing District

San Diego’s tourism agency says it will shut its doors Monday because the money it needs to pay its employees has still not been released by the city.

Mayor Bob Filner acknowledged in an interview Wednesday night that he is withholding millions of dollars in tourism marketing revenue until he is assured that a share of the money will go to help underwrite the centennial celebration of the 1915 Panama-California Exposition in Balboa Park.

Although the city’s hoteliers and Filner last month ended their months-long feud over how to spend money generated by a 2 percent hotel room levy, Filner claims that San Diego’s Tourism Marketing District is not holding up its end of the deal and worries that the centennial effort will be shortchanged. The hotelier-run district counters that it does plan to honor its commitment but anticipates lower revenues than originally forecast.

“We agreed that the Balboa Park Centennial would get 5 percent of the funds they get (through June),” Filner said. “They told the centennial people they’re probably not going to get any money because they don’t have any money. I want them to give Balboa Park money off the top, not the bottom. They don’t want to give Balboa Park money so they shouldn’t get their money until they give it to Balboa Park.”

Unless the frozen funds are released soon, all marketing efforts will be suspended come Monday, said Tourism Authority CEO Joe Terzi, whose agency relies on the marketing district revenues for 80 percent of its funding. The district estimates that the 2 percent room surcharge will yield $11 million by the end of June.

That money, collected by the city, is supposed to be disbursed to the TMD under an operating agreement ratified by the City Council and already signed by the mayor.

The Tourism Authority’s move to shut down, which could be short-lived if centennial funding is approved today, comes as San Diego’s tourism industry prepares for the crucial summer season. Unaffected by the closure is the Tourism Authority’s sales and marketing efforts for the Convention Center. The 12 staff members tasked with securing long-term bookings are paid through a contract with the Convention Center Corp.

“We don’t have any money, and we can’t continue to operate,” Terzi said. “We’re waiting to see if the TMD can get the issue resolved with the mayor but right now, effective Monday, we’re suspending sales and marketing operations. Do we want to do this? No. I have 85 employees I just told they can’t come to work Monday. It’s not a joke. I made my payroll (previously) by borrowing money.”

The tourism agency earlier this year issued layoff notices to its employees, scheduling terminations for mid-May when it appeared Filner wouldn’t release the marketing funds. It didn’t expect layoffs would be necessary after the mayor signed the tourism agreement last month.

Also shutting down Monday is the downtown visitors’ center, where tickets to local attractions can be purchased, said Tourism Authority spokesman Darren Pudgil.